Sweden: Proposal for financial activity tax | KPMG | GLOBAL

Sweden: Proposal for financial activity tax

Sweden: Proposal for financial activity tax

A report concerning the taxation of financial services, issued 7 November 2016 by a government committee, proposes that a new tax be imposed on the financial services sector—specifically, a financial activity tax to be proposed at a rate of 15% of total salary costs during a tax year. In other words, the tax would be an additional salary tax. The proposed effective date would be 1 January 2018.

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For the most part, companies in the financial services sector currently are exempt from value added tax (VAT). The proposal for a financial activity tax would apply the tax to those entities providing VAT-exempt serices. Also, entities acquiring VAT-exempt services from abroad would be subject to the proposed financial activity tax.

Thus, the financial activity tax would be applied broadly and would generally apply to any company providing VAT-exempt financial services or acquiring VAT-exempt financial services from abroad. The finanical activity tax would apply not only to banks, insurance companies, fund companies, and similar providers of financial services, but also possibly to companies with treasury functions, intermediaries of financial services, and IT companies providing financial services. Governmental bodies would be subject to the tax (except for the Swedish central bank).

 

Read a November 2016 report prepared by the KPMG member firm in Sweden: Proposal on a Financial Activity Tax in Sweden

 

For more information, contact a KPMG tax professional in Sweden:

Nils Schmid | +46 8 723 97 95 | nils.schmid@kpmg.se

Pontus Fornell | +46 8 723 95 42  | pontus.fornell@kpmg.se

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